Gestion Forêt-Dale Inc. v. The Queen, 2009 DTC 1378, 2009 TCC 255 -- summary under Effective Date

After the accountants, over a year later, realized that a reorganization plan resulted in Part IV tax because two corporations were not connected at the time of the redemption of shares giving rise to a deemed dividend, they had resolutions prepared by a notary dated as of the date of the previous reorganization effective date purporting to issue special voting shares to the corporation receiving the deemed dividend, followed immediately thereafter by the shares' redemption. Favreau, J. interpreted these measures as retroactive tax planning, not the correction of a mistake in the implementation of the plan, and noted, in any event, that under the articles of the corporation issuing the voting shares, such shares were not redeemable, nor did it appear that such shares were validly issued as it appeared that the corporation did not receive the subscription price therefor.